Employee Retention-Turnover Matrix

The Employee Retention-Turnover Matrix is a 2x2 matrix used to categorize employees based on their likelihood of staying with the company and their performance levels. This tool helps managers identify which employees are at risk of leaving and which ones are high performers, allowing for targeted retention strategies and performance management.

At a very high level, the Employee Retention-Turnover Matrix is used in the context of business, human resources, management.

Employee Retention-Turnover Matrix quadrant descriptions, including examples
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What is the Employee Retention-Turnover Matrix?

A visual explanation is shown in the image above. The Employee Retention-Turnover Matrix can be described as a matrix with the following quadrants:

  1. High Performance, High Retention: Employees who perform well and are likely to stay with the company. Example: A top sales representative who is satisfied with their role.
  2. High Performance, Low Retention: Employees who perform well but are at risk of leaving the company. Example: A talented software developer who is considering a job offer from another company.
  3. Low Performance, High Retention: Employees who do not perform well but are likely to stay with the company. Example: A long-term administrative assistant who struggles with new technology.
  4. Low Performance, Low Retention: Employees who do not perform well and are likely to leave the company. Example: A customer service representative with poor performance and low job satisfaction.

What is the purpose of the Employee Retention-Turnover Matrix?

The Employee Retention-Turnover Matrix is a strategic tool used in human resource management to evaluate and categorize employees based on two critical dimensions: their likelihood of staying with the company (retention) and their performance levels. This matrix helps managers and HR professionals identify which employees are high performers and likely to stay, which are high performers but at risk of leaving, and which are low performers with varying retention probabilities.

The matrix is divided into four quadrants:

  • Top-Left Quadrant (High Performance, High Retention): Employees in this quadrant are the backbone of the organization. They perform well and are likely to stay with the company. These employees should be nurtured and given opportunities for growth and development.
  • Top-Right Quadrant (High Performance, Low Retention): These employees are high performers but are at risk of leaving the company. They may be looking for better opportunities or may be dissatisfied with some aspects of their current role. Managers should focus on retention strategies for these employees, such as offering incentives, career development opportunities, and addressing any concerns they may have.
  • Bottom-Left Quadrant (Low Performance, High Retention): Employees in this quadrant are not performing well but are likely to stay with the company. These employees may require additional training, support, or a change in role to improve their performance.
  • Bottom-Right Quadrant (Low Performance, Low Retention): These employees are neither performing well nor likely to stay with the company. Managers should consider whether it is worth investing in their development or if it might be better to let them go.

By using the Employee Retention-Turnover Matrix, organizations can make informed decisions about employee development, retention strategies, and overall workforce planning. This tool is particularly useful for identifying high-potential employees who may be at risk of leaving and for addressing performance issues in a structured manner.


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What templates are related to Employee Retention-Turnover Matrix?

The following templates can also be categorized as business, human resources, management and are therefore related to Employee Retention-Turnover Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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